Credit cards have been identified as the most secure payment method by consumers, according to data from the Electronic Payments Coalition (EPC). The EPC notes that credit card networks such as Visa and Mastercard have invested billions of dollars in security measures, which enabled them to block over $60 billion in fraud last year. This effort has resulted in significant savings for U.S. households.
The EPC warns that proposed Durbin-Marshall credit card mandates could undermine these protections. These mandates would require credit cards to be processed on alternative networks that may not have invested similarly in advanced security systems or offer the same zero-liability fraud protections currently available to credit card holders. When similar requirements were implemented for debit card transactions, there was an increase in fraud, and academic research suggests that if the Durbin-Marshall mandates are enacted, fraud levels could double compared to 2021.
“American households trust the current credit card processing systems because it works,” said EPC Executive Chairman Richard Hunt. “Credit card networks and issuing banks are on the front lines protecting consumers against fraud, leveraging state-of-the-art tools and technology to stop ever-evolving fraud and phishing scams. Corporate mega-stores on the other hand have experienced data breach after data breach, showing they are willing to cut corners when it comes to security. Why should Americans have to put their financial security at risk because a handful of politicians want to help corporate mega-stores pocket more money.”
The EPC advocates for continued investment in new technologies and national data security standards as ways to strengthen the payment system.